Economy of Burkina Faso

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The '''economy of [[Burkina Faso]]''' is based primarily on subsistence farming and livestock raising.{{cite web | title = Burkina Faso | url = https://www.britannica.com/place/Burkina-Faso/Demographic-trends#ref54883 | access-date = 29 October 2019}} Burkina Faso has a low average income level, with GDP per capita estimated at approximately $3,000 (PPP) and $1,100 (nominal) in the mid-2020s. More than 80% of the population relies on [[subsistence agriculture]] with only a small fraction directly involved in [[Industrial sector|industry]] and [[Service sector|services]]. Highly variable rainfall, poor [[soil]]s, lack of adequate communications and other [[infrastructure]], a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The [[export]] economy also remained subject to fluctuations in world prices.

[[Burkina Faso]] has a [[Developing country|developing]], [[Least developed countries|low-income]] economy. It is based primarily on subsistence farming and livestock raising.{{cite web | title = Burkina Faso | url = https://www.britannica.com/place/Burkina-Faso/Demographic-trends#ref54883 | access-date = 29 October 2019}} Burkina Faso has a low average income level, with GDP per capita estimated at approximately $3,000 (PPP) and $1,100 (nominal) in the mid-2020s. More than 80% of the population relies on [[subsistence agriculture]] with only a small fraction directly involved in [[Industrial sector|industry]] and [[Service sector|services]]. Highly variable rainfall, poor [[soil]]s, lack of adequate communications and other [[infrastructure]], a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The [[export]] economy also remained subject to fluctuations in world prices.

The country has a high population density,{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/ |access-date=2026-02-05 |website=World Bank Open Data}} a fragile [[soil]],{{Cite journal |last=Bassole |first=Zelbié |last2=Yanogo |first2=Isidore Pawendkisgou |last3=Idani |first3=Fulgence Talaridia |date=2023-03-08 |title=Caractérisation des sols ferrugineux tropicaux lessivés et des sols bruns eutrophes tropicaux pour l’utilisation agricole dans le bas-fond de Goundi-Djoro (Burkina Faso) |url=https://www.ajol.info/index.php/ijbcs/article/view/243102 |journal=International Journal of Biological and Chemical Sciences |language=en |volume=17 |issue=1 |pages=247–266 |doi=10.4314/ijbcs.v17i1.18 |issn=1997-342X|doi-access=free }} and is rich in [[natural resource]]s like [[gold]].{{Cite web |title=Iamgold’s growing investment in Burkina Faso |url=http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/iamgolds-growing-investment-in-burkina-faso/article2403056/ |archive-url=https://web.archive.org/web/20120417022919/http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/iamgolds-growing-investment-in-burkina-faso/article2403056/ |archive-date=2012-04-17 |access-date=2026-02-05 |website=The Globe and Mail |language=en-ca}}{{Cite web |date=2021-04-30 |title=Growth in Burkina Faso Gold Mining Fuels Human Trafficking |url=https://www.voanews.com/a/africa_growth-burkina-faso-gold-mining-fuels-human-trafficking/6205259.html |access-date=2026-02-05 |website=Voice of America |language=en}} Industry remains dominated by unprofitable government-controlled corporations.{{Cite news |title=Burkina Faso to nationalise more industrial mines, PM says |url=https://www.reuters.com/world/africa/burkina-faso-nationalise-more-industrial-mines-prime-minister-says-2025-04-29/ |archive-url=http://web.archive.org/web/20250501082927/https://www.reuters.com/world/africa/burkina-faso-nationalise-more-industrial-mines-prime-minister-says-2025-04-29/ |archive-date=2025-05-01 |access-date=2026-02-05 |work=Reuters |language=en-US}} Following the African franc currency devaluation in January 1994 the government updated its development program in conjunction with international agencies, and exports and economic growth have increased. Maintenance of its [[macroeconomics|macroeconomic]] progress depends on continued low inflation, reduction in the trade deficit, and reforms designed to encourage private investment.

The country has a high population density,{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/ |access-date=2026-02-05 |website=World Bank Open Data}} fragile [[soil]],{{Cite journal |last=Bassole |first=Zelbié |last2=Yanogo |first2=Isidore Pawendkisgou |last3=Idani |first3=Fulgence Talaridia |date=2023-03-08 |title=Caractérisation des sols ferrugineux tropicaux lessivés et des sols bruns eutrophes tropicaux pour l’utilisation agricole dans le bas-fond de Goundi-Djoro (Burkina Faso) |url=https://www.ajol.info/index.php/ijbcs/article/view/243102 |journal=International Journal of Biological and Chemical Sciences |language=en |volume=17 |issue=1 |pages=247–266 |doi=10.4314/ijbcs.v17i1.18 |issn=1997-342X|doi-access=free }} and abundant [[natural resource]]s like [[gold]].{{Cite web |title=Iamgold’s growing investment in Burkina Faso |url=http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/iamgolds-growing-investment-in-burkina-faso/article2403056/ |archive-url=https://web.archive.org/web/20120417022919/http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/iamgolds-growing-investment-in-burkina-faso/article2403056/ |archive-date=2012-04-17 |access-date=2026-02-05 |website=The Globe and Mail |language=en-ca}}{{Cite web |date=2021-04-30 |title=Growth in Burkina Faso Gold Mining Fuels Human Trafficking |url=https://www.voanews.com/a/africa_growth-burkina-faso-gold-mining-fuels-human-trafficking/6205259.html |access-date=2026-02-05 |website=Voice of America |language=en}} Industry remains dominated by unprofitable government-controlled corporations.{{Cite news |title=Burkina Faso to nationalise more industrial mines, PM says |url=https://www.reuters.com/world/africa/burkina-faso-nationalise-more-industrial-mines-prime-minister-says-2025-04-29/ |archive-url=http://web.archive.org/web/20250501082927/https://www.reuters.com/world/africa/burkina-faso-nationalise-more-industrial-mines-prime-minister-says-2025-04-29/ |archive-date=2025-05-01 |access-date=2026-02-05 |work=Reuters |language=en-US}} Following the African franc currency devaluation in January 1994 the government updated its development program in conjunction with international agencies, and exports and economic growth have increased. Maintenance of its [[macroeconomics|macroeconomic]] progress depends on continued low inflation, reduction in the trade deficit, and reforms designed to encourage private investment.

== Financial System Overview ==

== Financial System Overview ==